Posted on 02/06/2007 7:41:28 AM PST by SmithL
NASHVILLE - Gov. Phil Bredesen asked the Legislature on Monday to raise Tennessee's cigarette tax by 40 cents per pack and spend most of the resulting $220 million in new revenue on education.
"The argument for a cigarette tax is straightforward: Our schools need more money," said Bredesen, adding that 90 percent of the new annual tax revenue would go to local schools or state colleges and universities.
The biggest portion of the new money, almost $120 million, would be distributed to local school systems on the basis of how many "at risk" students they have. Currently, the state covers 38 percent of the cost of "at risk" programs. Bredesen proposes to cover 100 percent with the $120 million.
School systems can use funds they are now spending on "at risk" students on other classroom-related programs.
"This will help the students who need extra, and it will help other students as well by stopping the robbing Peter to pay Paul that goes on now," Bredesen said.
Bredesen noted that some people - especially in more urban areas - have called for "a radical overhaul" of the Basic Education Program system for distributing state money to local schools but said, "I don't think this is wise."
"(This proposal) is a major step forward for our state," he said. "It helps resolve inequities in state funding between school districts, and it is also simply the right thing to do."
No breakdown was provided Monday on how much that would mean for Knox County and other K-12 school systems, though Bredesen spokesmen said figures would be available later this week.
Some key lawmakers, such as Rep. Harry Tindell, D-Knoxville, vice chairman of the powerful House Finance Committee, said he felt Knox County, shortchanged in past distributions of state funds, should get "between $10 million and $15 million" in extra funding.
Knox County Mayor Mike Ragsdale said he also wanted to see specifics on Knox County's share of the new funding, though said he saw "a potential to do some really good things."
Other new spending with the cigarette tax money, as proposed by Bredesen:
The proposed tax increase would apply only to cigarettes, not smokeless tobacco or cigars - though administration officials indicated that they would not necessarily oppose lawmakers amending the legislation to increase other tobacco taxes as well.
"Our cigarette tax is among the lowest in the nation, it has room to grow, and, even after such an increase, will still be well below the national average," Bredesen told legislators.
The governor's office said the national average cigarette tax now stands at $1 per pack, though it's just 36 cents in Southeastern states. Tennessee's current state tax is 20 cents.
In his State of the State address, Bredesen also proposed some new education spending beyond that covered by the proposed cigarette tax increase. The money would come from growth in the state's base tax system, largely dependent on sales taxes.
The other proposals include:
Currently, students with 21 or higher on the ACT are eligible for lottery scholarships at four-year institutions. The base scholarship is $3,800 per year, which Bredesen proposes to raise to $4,000.
Some lawmakers have pushed for using cigarette tax increase to reduce the food tax. Others object to any tax increase.
Bredesen said he has never asked for a general tax increase before but believes it appropriate now.
"Our state is already one of the very lowest tax places in America - among the states, it is number 48 in combined state and local taxes. Our future is vastly more tied to good schools than in trying to become number 49," he said.
What a surprise!
Geesh--I think a pack of cigs. is well over $6.80 here in Phoenix.
If GWB poured more money in education in his first year than all of eight years of Clinton combined, just where did all this money go?
I think I know the answer.
And now they need more.
I'm not from Tennessee, but...
As an Illinoisan, how many times have I heard this:
EDUCATION will receive the bulk of the benefits
from the increase in --
SALES TAX FROM 5% TO 6-1/2%
NEW LICENSES/BIGGER BITE ON GAMBLING CASINOS
A NEW "GREAT AMERICA" IN YOUR BACKYARD
LICENSE PLATE FEES DOUBLED
REAL ESTATE TAXES HEFTED - AGAIN!
Go for it Tennesseeans! If you SMOKERS don't
realize that as the MINORITY, you have been
appointed to support so many new programs via
those 3-4 DOLLAR packs a day, then you deserve
to keep that monkey on your pathetic backs!
The REST of us should know better than to fall
for those same pathetic cliches spouted by our
elected spokesmen!
And smokers could legitimately tell non-smokers that they hate children and don't want them to get a good education. If they cared about children, they would start smoking. Several packs a day!
Our sales tax was 4% when we moved here in 1967, It is now almost 10%
10% Sales Tax...Good Grief! How do
you manage to budget for groceries
and home necessities?! Guess you
don't have too many weekend visitors.
What STATE is that, anyway?
I'm ready to give in to the anti-smokers and let them have their psychotic robbery of smokers. On one condition : I want food charged by the calorie. Let's distribute some of this socialist fun to the overeaters. I can't count how many fat people have fake coughed around me when I was smoking OUTDOORS in high wind. As if they care about their health.
I guess the "Tennessee Education Lottery" isn't holding up it's end of the bargain? More likely the State is just pissing that money away, as they will this "new revenue".
I live in TN. My FIL works for a TBR Tech Center here in the state, and tried to explain to me why the lottery didn't do jack for students but he's not the best in the world at explaining government stuff, so I never got it. Is there a FReeper that can explain it. Not trying to hijack the thread, I believe whatever the state did with lottery funds they will do the same thing with this money.
Only $15 million for anti-smoking education? If they're going to take more money from smokers, it really ought to be for things to benefit smokers, like programs to help them quit, or for research or treatment of smoking-related diseases such as lung cancer. Or to prevent kids from starting to smoke. (I gather it is more addictive if you start smoking in your early teens instead of later on in life.)
I live in TN. Montgomery County. I am lucky that I can shop my groceries at Ft Campbell as I only live a few miles from post. And sometimes I shop in KY which has no sales tax on food. Their sales tax is only 6%
You go to MS if you live on the border as we do. 7% tax there.
Oh my heavens. Liberals must have never heard of the "LAW OF UNINTENDED CONSEQUENCES". Go on a misguided plan to stop smoking and suffer from lower/no tax revenue. Then what will we tax? Don't worry the politicians will always find a new tax.
Of course, he wants it for "EDUCATION", it's the only way to pass this onerous tax increase. There is no doubt in my mind that this tax increase will be spent on "SOCIAL PROGRAMS."
Oh my heavens. Liberals must have never heard of the "LAW OF UNINTENDED CONSEQUENCES". Go on a misguided plan to stop smoking and suffer from lower/no tax revenue. Then what will we tax? Don't worry the politicians will always find a new tax.
Of course, he wants it for "EDUCATION", it's the only way to pass this onerous tax increase. There is no doubt in my mind that this tax increase will be spent on "SOCIAL PROGRAMS."
Federal education dollars goes into the pockets of state and local bureaucrats and teacher's unions. It rarely goes to the children.
That's all well and good until YOU become a part of the minority they are after.
Nah, lets tax 'luxury' foods and the weird health foods. That way, the libs will be the ones getting hit.
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